LETS TALK BITCOIN

Episode 129 Dogeparty and Delegated Proof of Stake

Participants:
Adam B. Levine (ABL) Host
Stephanie M!ph" (SM) Co#host
And!eas M. Antonopo$os (AA) Co#host
%anie$ La!ime! (%L) # CEO o& Invi'ts Innovations
Toda" is the ($" ))
nd
)*+, and this is Episode +)-.
This program is intended for informational and educational purposes only.
ryptocurrency is a ne! field of study. onsult your local futurist" la!yer and in#estment
ad#isor $efore making any decisions !hatsoe#er for yourself.
%&': .e$'ome to Lets Ta$/ Bit'oin0 a t1i'e 1ee/$" sho1 a2ot the ideas0 peop$e and p!o3e'ts
2i$din4 the di4ita$ e'onom" and the &t!e o& mone". M" name is Adam B. Levine0 I am the
edito!#in#'hie& he!e at Lets Ta$/ Bit'oin and toda" 1e!e 4oin4 to thin/ di&&e!ent. %anie$
La!ime!0 CEO at Invi'ts Innovations0 !e'ent$" 3oined a$$ the hosts LTB &o! deep dive into thei!
3st#!e$eased Bitsha!es#5 p$at&o!m. .e ta$/ %e$e4ated 6!oo& o& Sta/e and +* se'ond
'on&i!mation times0 thei! ne1 t"pe in te'hno$o4" and the t"!ann" o& the 'ode. The ma4i' 1o!ds
$istene!s !e1a!ds p!o4!am is in &$$ s1in4 and 4oin4 4!eat0 $isten d!in4 this episode &o! the
ma4i' 1o!d0 !emem2e! and visit $etsta$/2it'oin.'om0 $o4in to "o! a''ont and on "o!
dash2oa!d0 "o$$ see 1he!e to se the ma4i' 1o!ds0 /eep "o! ea!s open. # Bt &i!st0 1e!e &e1
1ee/s in the LTB'oin e7pe!iment and sin'e thin4s have 4otten sta!ted0 Ive 'ome to some
s!p!isin4 !ea$i8ations that Id $i/e to sha!e 1ith "o.
Id $i/e te$$ "o a2ot %o4epa!t"0 most 'oins a!e va$a2$e 2e'ase o& the net1o!/ that ses them
and then attemptin4 to 2!in4 in se!vi'e p!ovide!s 1ho 1i$$ a''ept it0 ths 4ivin4 ti$it" o& the 'oin
and the!e&o!e va$e. He!e at LTB0 1eve 2een thin/in4 a2ot this a $ot and !e'ent$" !o$$ed ot o!
'!"pto !e1a!ds p$at&o!m LTB'oin. The t$9d! ve!sion is0 1e !e1a!d peop$e 1ith LTB'oin0 1ho
ma/e 1hat 1e a!e doin4 2ette! o! mo!e &n0 and the" 'an se it to 'ompete 1ith othe!s &o!
sponso! ai!time in the Lets Ta$/ Bit'oin sho10 and in the nea! &t!e the enti!e net1o!/ sho1s
and 2$o4s. On ($" ,
th
1e sent o! $a!4est dist!i2tion so &a!0 ,+- !e4iste!ed and 'on&i4!ed se!s
sp$it +.: mi$$ion LTB 'oin p!opo!tiona$$"0 2ased on thei! 'ont!i2tion.
It 1ent 4!eat and the !esponse has 2een ama8in40 t!ns ot 1hen "o 4ive peop$e somethin4 &o!
&!ee0 $i/e &o! somethin4 the" 1e!e a$!ead" doin40 2t not 2ein4 !e1a!ded &o!0 the" !ea$$" en3o" It0
2t the!e is a p!o2$em0 2e'ase LTB'oin is 2i$t on 'onte!pa!t"0 1hi'h is 2i$t on 2it'oin0 eve!"
sin4$e time 1e send LTB'oin to an se!s0 1hi'h 1e!e doin4 1ee/$"0 1e need to pa" a 2it'oin
&ee0 to pe!&o!m those ,+- sends 'ost a $itt$e ove! *.*; BTC0 1hi'h at '!!ent !ates0 its 1o!th
a2ot <=+ o! <*.*: pe! pe!son0 dont 4et me 1!on40 that 'ost is &antasti' 1hen 'ompa!ed a4ainst
an" non#'!"pto'!!en'" so$tion and o& 'o!se 1e!e a'ta$$" sin4 a!ti&i'ia$$" $o1e!ed &ees0
a2ot a >a!te! o& the standa!d 2it'oin th!o4h a s'!ipt that the 5C6 dev. 4ave s0 2t that$$ on$"
1o!/ nti$ mo!e p!o3e'ts sta!t pshin4 vo$mes th!o4h 'onte!pa!t" and on that s23e't0 1hi$e
2it'oin is a$so insane$" &ast0 1hen 'ompa!ed a4ainst 'onventiona$ &inan'ia$ options0 it t!ns ot
the!es >ite a 2it o& va!ian'e in 2$o'/ times.
The +* mintes is an ave!a4e0 2t 2$o'/ sometimes a2ot se'onds apa!t0 1hi$e othe! times an
ho! 1i$$ pass 1ithot a sin4$e 2$o'/ 2ein4 &ond0 2e'ase ea'h a'tion in 'onte!pa!t"0 1hethe!
its send0 '!eation o& a ne1 to/en0 p$a'in4 an o!de! on a de'ent!a$i8ed e7'han4e o! sin4 the
p!edi'tion ma!/et. Eve!" sin4$e a'tion "o pe!&o!m mst &i!st 2e in'$ded in a Bit'oin 2$o'/
2e&o!e it a'ta$$" happened. ?ove neve! &e$t0 ho1 s$o1 the 2$o'/'hain 'an 2e0 nti$ "o a!e
1aitin4 &o! an ho! to 'on&i!m a ma!/et o!de!. .hat 1e need is an a$te!native0 somethin4 'heap
and p$enti&$ and &ast. It t!ns ot the!e a!e a'ta$$" >ite a &e1 4ood options ot the!e0 that meet
the need0 2t m" &avo!ite 2" &a! is %o4e0
%o4e is an inte!estin4 to/en0 it sta!ted o&& as a 3o/e that e7p$oded in pop$a!it" and has &ond its
p$a'e as a /ind o& ad ho' 'ha!it" 'oin. .heneve! the need0 %o4e is the!e !ead" to pt thei!
mone"0 1he!e thei! 'o$$e'tive moths a!e0 a$tho4h its not one o& the mo!e e7pensive to/ens0
%o4e is a'ta$$" one o& the $a!4est '!"pto'oin 'ommnities and 'e!tain$" one o& the most vo'a$.
I& va$e is the $an4a4e0 %o4e is a ve!" 'ommon$" spo/en ton4e in the 1o!$d o& '!"pto0 so 1hen
.ende$$ %avis &!om Hive and Hmint0 as/ed me 1hat I tho4ht a2ot pttin4 the 'onte!pa!t"
p!oto'o$ onto the %o4e'oin 2$o'/'hain0 I 1as p!ett" int!i4ed.
.ith 2it'oin 1e see a2ot a +***@ va!ian'e in 2$o'/ times0 !an4in4 &!om ove! an ho!0 $i/e I
mentioned to nde! a minte0 &!om that +* minte ave!a4e. .ith a A* se'ond 2$o'/ time0 %o4e is
3st a2ot pe!&e't0 i& it has somethin4 $i/e that same +*** @ va!ian'e0 "ove 4ot a ma7imm o&
+* mintes and a minimm time o& +* se'onds0 &!om se! e7pe!ien'e standpoint0 I thin/ this
o!de! o& ma4nitde is 2ette!0 2t the 'ost is 1he!e m" 3a1 3st d!opped. %o4e is '!!ent$" t!adin4
a!ond =A satoshi ea'h0 dst $imit &o! 2it'oin is seve!a$ thosand satoshi0 so this means that i& 1e
paid even one &$$ %o4e pe! t!ansa'tion and the de&a$t &ee in %o4e is 8e!o0 o! 'ost &o! the enti!e
*.*; BTC t!ansa'tion0 1o$d have 2een *.***+; 2it'oin o! ==+ times 'heape!. %o4e is +* times
&aste!0 mo!e than +** times 'heape!0 1hats the do1nsideB Ci!st0 it has 2$o'/ o!phans0 3st $i/e in
an" othe! net1o!/ 1hen a mine! &inds a 2$o'/0 the" !a'e to annon'e it to the net1o!/ and '$aim
thei! !e1a!d. Caste! 2$o'/'hains have mo!e o!phans0 so "o need mo!e 'on&i!mation in o!de! to
2e s!e that a t!ansa'tion a'ta$$" happened and "o a!e not 4onna see a &o!/0 &ive 2$o'/s on
do1n the $ine.
In p!a'ti'e0 it means that "o 'an 1ait &o! +* 'on&i!mations to 2e as 'e!tain as "o a!e 1ith one
2it'oin 'on&i!mation0 a$tho4h this is so!t o& a &nn" 1a" to sa" it0 %o4e &ndamenta$$" at this
sta4e is p!o2a2$" not se'!e0 2t pttin4 a va$e $a"e! on top o& it $i/e this0 mi4ht a'ta$$" so$ve
that p!o2$em. Di4ht no10 %o4e is t!"in4 to so$ve a p!o2$em0 that a $ot o& peop$e 'onside! a$!ead"
so$ved0 2it'oin is a$!ead" 4ood eno4h0 +* minte t!ansa'tions0 its seven 'ents0 1ho !ea$$" 'a!es0
i& "o!e 3st a no!ma$ se!0 2t 1hen it 'omes to '!eatin4 ne1 to/ens to do innovative thin4s o!
even 3st to p$a" 4ames0 1e!e p$a"in4 1ith a $ot o& p88$e t"pe thin4s0 1he!e "o have a to/en
that 1i$$ a't as a /e"0 that then 1hen "o possess it0 it a'ta$$" sho1s "o thin4s that i& "o dont
have that to/en "o 1o$dnt see0 so the!e a!e a$$ these non#moneta!" 1a"s that Im ve!"
inte!ested in deve$opin4 '!"pto'!!en'" te'hno$o4" and i& 1e do it on 2it'oin and &i!st o&& 1e
need the 'hn/ o& the Bit'oin 2$o'/'hain and se'ond$"0 its m'h mo!e e7pensive0 ==* times
mo!e e7pensive0 in the e7amp$e that 1e sed.
I& 1e 1e!e ta$/in4 a2ot a mone" t!ans&e! this 1o$d mean0 "o need a 2n'h o& 'on&i!mations0
+* 'on&i!mations p$s0 2t the vie1 is ve!" di&&e!ent0 1hen "o!e ta$/in4 a2ot a 'onte!pa!t"
$a"e!. He!e0 o!phans dont !ea$$" matte! at a$$0 i& "o! o!de! o! asset didnt 4et in'$ded in a !ea$
2$o'/0 1e$$ its sti$$ ot the!e0 the net1o!/ 1i$$ 3st /eep t!"in4 to p$a'e it0 nti$ it does so and
2e'ase the time 2et1een 2$o'/s is so m'h sho!te!0 "o!e 4onna 4et !ea$ and meanin4&$
&eed2a'/ in a m'h &aste! 1a"0 even in %o4e the ma3o!it" o& 2$o'/s dont o!phan and so in a
no!ma$ s'ena!io "o!e $oo/in4 at0 a one minte !esponse time and in an e7t!eme$" 2ad s'ena!io0
"o!e $oo/in4 at pe!haps a =* minte 1ait time. Compa!e that a4ainst 2it'oin0 its !ea$$" no
'ontest.
LTB'oin is not movin4 to %o4e0 "et0 2t as Ive a$1a"s said0 LTB is &o'sed on so$tions in the
ne1 di4ita$ e'onom"0 m'h mo!e than 1e a!e a2ot !a10 !a10 $ets a$$ 2e !i'h 1ith 2it'oin0 i&
the!es an o2vios$" 2ette! so$tion ot the!e to a''omp$ish a 4iven tas/ 1e!e 4onna se it0 2t
the %o4epa!t" isnt 4oin4 to 1ait &o! s0 its 4onna happen p!ett" m'h !i4ht no1.
Id $i/e to int!od'e to "o %o4epa!t"0 %o4epa!t" is the open so!'e 'onte!pa!t" p!oto'o$
adopted and app$ied to the %o4e'oin 2$o'/'hain. That means "o 'an easi$" '!eate ne1
'!"ptoassets 1ith it0 se its &$$ 6)6 de'ent!a$i8ed e7'han4e0 se it 1ith &eeds &o! de'ent!a$i8ed
p!edi'tion ma!/et0 4!op 'hat and its a$so one o& the &i!st m$ti#to/en 1a$$ets ot the!e and so
1o$d 2e the &i!st m$ti#to/en 1a$$et avai$a2$e on the %o4e p$at&o!m. .ith %o4epa!t" an"2od"
1i$$ 2e a2$e to '!eate a to/en that !ides on top o& the %o4e'oin 2$o'/'hain &o! 1hateve! p!pose
the" desi!e0 "o 'o$d '!eate a '!"pto !e1a!ds p!o4!am $i/e LTB'oin0 "o 'o$d '!eate a 'ha!it"
to/en0 thats 4iven ot to those 1ho donate to "o! 'ase. ?o 'o$d '!eate a 4ame to/en0 thats
a1a!ded to 1inne!s and a $itt$e 2it to the $ose!s o& "o! 'ha$$en4e. ?o 'o$d '!eate a !eptation
'oin0 that "o '!eate &e1 o& them and 4ive ot on$" to those "o t!st0 1heneve! "o 'an ima4ine
"o 'an do it and its 4onna 4et mo!e inte!estin4 than this0 ne7t 1ee/ I am 4onna 2e !e$easin4
pape! on to/en 'ont!o$ vie1point0 that 2asi'a$$" des'!i2es ho1 "o 'an se this t"pe o& asset
2i$t on top o& anothe! 'oin0 as a 1a" to 4ain a''ess to in&o!mation0 that "o othe!1ise dont
have a''ess to.
Its a 1a" to have a 1e2site that 'o$d have hnd!eds o& ve!sions and peop$e 1ho have di&&e!ent
to/ens0 visit the pa4e and see di&&e!ent thin4s !e$ative to 1hat t"pes o& to/ens have. Its a ve!"
nas'ent 'on'ept0 2t its so m'h mo!e &easi2$e0 i& the 'ost to do it is 2asi'a$$" nothin4 and 1ith
%o4e0 thats !ea$$" 1hat 1e $oo/in4 at the 'ost is 2asi'a$$" nothin40 1hateve! "o 'an ima4ine
"o 'an do it. It doesnt !e>i!e minin4 o! "o 1o!!"in4 a2ot the se'!it" o& the net1o!/0 a$$
"o have to do is thin/ a2ot 1hat "o 1ant to a''omp$ish and then se this ve!sati$e too$/it to
ma/e it !ea$0 2t the!es one mo!e thin4 that 1e need to &i4!e ot and &o! this 1ed !ea$$"
app!e'iate "o! he$p.
In o!de! to do these advan'ed thin4s 1e need to '!eate a ne1 to/en0 the &i!st to/en0 'onte!pa!t"
has a to/en 'a$$ed 5C6. .hi'h 1as '!eated and assi4ned th!o4h the p!o'ess 'a$$ed p!oo& o&
2!n0 2!n add!ess is an add!ess "o 'an send '!"pto to0 2t 1hos p!ivate /e" 'an neve! 2e
/no1n0 2e'ase its too 'ha$$en4in4 to so$ve0 th!o4h this p!o'ess a2ot ).; mi$$ion 5C6 1e!e
'!eated0 1hen )+** 2it'oin 1e!e send to the one 'onte!pa!t" and then &o$$o1ed 2" a 2n'h a7es0
1ithin thei! =* da" 2!n. Initia$$" I tho4ht that this 1as 1aste&$ 2e'ase o2vios$"0 it 1o$dve
2een 2ette! to have the &nds 1ith 1hi'h to deve$op p!o3e't0 2t it 1asnt $on4 2e&o!e I 1as
st!'/ 2" ho1 d!ama &!ee this method is. Its !ea$$" &ai!0 N5T did somethin4 simi$a!0 2t the
p!o2$em 1as the $a'/ o& t!st in an anon"mos deve$ope! 1ith a spe'$ative p!o3e't0 so
pa!ti'ipation 1as in'!edi2$" $o10 $ess than a hnd!ed individa$s 1ith the E!aise o& )+ 2it 'oins o!
+@ o& 5C6 tota$.F This isnt to deni4!ate N5T0 me!e$" to sho1 the di&&e!en'es 2et1een
pa!ti'ipation in a p!o3e't0 1he!e mone" is 2ein4 4iven to someone anon"mos0 1hi'h ths
!e>i!es t!st0 that pe!son 1ont !n o&& 1ith the &nds0 'ompa!ed to the mone" itse$& 2ein4
dest!o"ed. 5C6 a$so distin4ishes itse$& 2" not havin4 an" so!t o& &onde! a$$o'ation o! p!emine0
the &onde!s and deve$ope!s have 1hat the" have 2e'ase the" 2!n thei! o1n 2it'oins0 its a 1a"
o& de&initive$" sa"in4 1e!e a$$ p$a"in4 2" the same !$es and i& 1e s''eed 1e a$$ 1in and i& 1e
&ai$0 the deve$ope!s dont 4ain &!om thei! &ai$!e.
The $esson I ta/e &!om this is that0 t!st is an impo!tant &a'to!G the in'entives &o! a$$ the pa!ties
need to 2e a$i4ned. The!e is anothe! path tho4h0 1hi$e p!oo& o& 2!n is &a!e0 it a'ta$$" is so!t o&
1aste&$0 even i& "o!e not 4ivin4 them to the deve$opment team0 2e'ase &o! e7amp$e "o dont
need m'h in te!ms o& deve$opment &nds. The!e a!e man" 1a"s it 'o$d 2e sed to ma/e the
1o!$d a $itt$e 2ette! and so 1eve 'ome p 1ith an a$te!native &o! "o to 'onside!. 6!oo& o&
'ha!it" is a 2!n the 'an sti$$ do 4ood0 to '!eate 5%60 the to/en o& the %o4epa!t" p$at&o!m0
instead o& sendin4 "o! %o4e to an nspenda2$e add!ess0 "od send it to a M$tiSi4 add!ess0 that
!e>i!es a$$ o& the /e" ho$de!s to si4n o&&0 in o!de! to !e$ease the &nds0 this 1o$dnt happen nti$
a&te! the 5%6 4ene!ation p!o'ess is 'omp$ete to p!event !e'"'$in4 o& to/en th!o4h the s"stem0
this is o! p!ima!" 'on'e!n d!in4 this. %!in4 this pe!iod 1e 1o$d en$ist the %o4e'oin
'ommnit"0 spe'i&i'a$$" on Deddit0 to he$p s &ind and vet 'ha!ities 1ho 1o$d pa!ti'ipate in the
%o4e 6!oo& o& Cha!it" and on'e it &ind a meas!e pop$a! sppo!t 1o$d 2e entit$ed to an e>a$
sha!e o& the %o4e 'o$$e'ted 2" this method. Its impo!tant that the /e" ho$de!s a!e dive!se0 so
a4ain 1ed $i/e to as/ the he$p o& the 'ommnit" 1ith this0 o! p!oposa$ 1o$d 2e one /e" ho$de!
&!om the %o4e'oin dev. team0 one pi'/ed 2" the %o4e'oin 'ommnit" and then I$$ !aise m"
hand he!e as the thi!d /e" ho$de!s0 sin'e I am not !ea$$" invo$ved 1ith %o4e'oin to m'h and I
have a 2it o& !eptation to $ose0 2t i& the 'ommnit" has a 2ette! s44estion0 then I 1o$d
happi$" not have the !esponsi2i$it".
Dea$$" at this point0 1e 'an 4o eithe! 1a"0 this $an'h is happenin4 ne7t 1ee/0 so p$ease 3oin the
'onve!sation as soon as possi2$e. ?o 'an see a$$ o& the !e$evant $in/s ove! at %o4epa!t".io0 thats
%OHE6ADT?.IO. .hat do "o thin/ 'ha!it" o! 2!nB (oin the 'onve!sation no1 at
%o4epa!t".io.
%&': M" name is Adam B LevineG Im he!e a$on4 1ith the othe! hosts o& Lets Ta$/ Bit'oin0
Stephanie M!ph".
S(: He$$o
%&': And!eas M. Antonopo$os
%%: He$$o
%&': Toda" on Lets Ta$/ Bit'oin0 1e!e 3oined 2" %anie$ La!ime!0 CEO o& Invi'ts Innovations
and the 4" 2ehind the BitSha!es p!o3e't. %anie$0 ho1 "o doin4B
D': Im doin4 4!eat. Its e7'itin4 to 2e he!e a4ain.
%&': Its 2een a2ot si7 months0 I 4ess sin'e 1eve had "o on the sho10 2e&o!e 1e 4et into
1hats 4oin4 on0 'an "o /ind o& 4ive s a !e'ap on "o! $ast si7 months o& p!o'ess 1ith this
p!o3e't.
D': BitSha!es is a$$ a2ot doin4 de'ent!a$i8ed atonomos 'ompanies o! ma/in4 2$o'/'hains
that a!e p!o&ita2$e. .ith o! &$a4ship 'on'ept that BitSha!es#50 1hi'h a$$o1s s to '!eate the
BitIS%0 1hi'h is a '!"pto'!!en'" that is a ma!/et0 pe44ed to the va$e o& the do$$a! and
othe!1ise0 has the p!ope!ties o& the 2it'oin and thats so!t o& 1he!e this enti!e p!o3e't sta!ted.
Ove! the past si7 months0 1e have 2een t!"in4 to &ind a so$tion to 6!oo& o& .o!/0 6!oo& o&
Sta/e0 2asi'a$$" the 'onsenss p!o2$em that is e&&i'ient and 1i$$ s'a$e0 a&te! o! e7pe!ien'e 1ith
6!oo& o& .o!/ sho1ed that0 it !es$ted in 'ent!a$i8ation0 the mine!s on o! ea!$" net1o!/ o&
6!otosha!es 1as0 the" 1e!e not in'$din4 t!ansa'tions. .eve had a $ot o& isses 1ith 6!oo& o&
.o!/0 so o! p!o3e't 1as set 2a'/ 2" a 'op$e months0 1hi$e 1e invented t1o ve!" '!iti'a$
te'hno$o4"0 the &i!st is %e$e4ated 6!oo& o& Sta/e and the se'ond is TITAN0 1hi'h stands &o!
T!ans&e! Invisi2$" To An" Name0 'om2ined this a$$o1s s to have the t!ansa'tion speeds o&
Dipp$e 1ithot the 'ent!a$i8ation o& Dipp$e.
%&': That sonds p!ett" 4ood0 1hat is the do1nsideB
D': As &a! as I 'an te$$0 1e &ond the 2est 'omp!omise o& a$$ the di&&e!ent te'hno$o4ies ot the!e.
%&': A$so0 1hat 1as the p!o2$em that "o 1e!e t!"in4 to so$veB Be'ase 6!oo& o& .o!/ is
somethin4 thats 2een in p$a'e &o! >ite a 1hi$e and a $ot o& peop$e thin/ that0 its p!ett" m'h the
$e4itimate 1a" to do these dist!i2tions0 so "o sta!t o&& 1ith a 6!oo& o& .o!/s s"stem 2a'/ in
Novem2e!. Can "o ta$/ a2otG "o said that peop$e 1e!e in'$din4 t!ansa'tions0 1h" 1asnt it
1o!/in4 &o! "o0 1he!e it has 1o!/ed &o! othe!sB
D': 6!oo& o& .o!/s is &ndamenta$$"0 e'onomi' insanit". Its the idea that 1e!e 4oin4 to se'!e
the net1o!/0 2" 2!nin4 o! mone" and 1hoeve!s 1i$$in4 to 2!n the most !eso!'es &o! the
$east !e1a!d 4ets to 'ont!o$ the net1o!/. I& "o o1n 2it'oin0 "o have no sa" ove! ho1 the
net1o!/ is ope!ated0 the mine!s have 'omp$ete sa" ove! that and minin4 is somethin4 thats
a$1a"s 4onna 'ent!a$i8e in e'onomies o& s'a$e0 so 1e 1anted to 4et a1a" &!om that. In o!de! to
4et a1a" &!om that0 1e need to &ind a ne1 1a" o& 2oth se'!in4 the net1o!/0 so that the
t!ansa'tion $ed4e! is n&o!4ea2$e and i!!eve!si2$e0 and de'idin4 1ho 4ets to p!od'e the ne7t
2$o'/ and e7tend the $ed4e! and the!e have 2een va!ios app!oa'hes to this. ?ove 4ot N5T and
6ee!'oin a!e the t1o a$te!natives to 6!oo& o& .o!/ !i4ht no1. .hat 1e have is %e$e4ated 6!oo&
o& Sta/e and 1hat ma/es s di&&e!ent is that0 1e se an app!ova$ votin40 the sha!eho$de!s0 the
peop$e 1ho a'ta$$" ho$d the 'oins0 i& "o have 2it'oin "o!e a 2it'oin0 i& "o o1n 2it'oin "o
'an tho4ht o& as a Bit'oin sha!eho$de!0 "o 4et to nominate de$e4ates to p!od'e 2$o'/s. .e
'hoose the a +*+ de$e4ates and the" ta/e t!ns0 ea'h p!od'in4 a 2$o'/ in t!n.
S(: Ho1 is that not 'ent!a$i8edB
D': A hnd!ed peop$e a!e a $ot mo!e de'ent!a$i8ed then 2it'oin0 1hi'h has t1o peop$e that
'ont!o$ ;+@ o& the net1o!/. The peop$e that a!e a'ta$$" p!od'in4 the 2$o'/s0 have the app!ova$
o& the ma3o!it" o& the sha!eho$de!s0 so the on$" peop$e that 'an a'ta$$" 2e the!e a!e the ones that
have the sppo!t &!om eve!"one0 1he!eas 1ith 2it'oin and othe! 6!oo& o& .o!/ 'oins0 its
1hoeve! 2"s into the position.
S(: This is sondin4 &ami$ia!0 'a$$in4 p memo!ies o& a Con4!ess. .hats not to p!event
'o!!ption and on'e 1hen someone 4ets e$e'ted0 so#'a$$ed0 1h" 1o$d the" not t!n evi$B
D': Bit'oin a$!ead" has the same p!o'esses0 its 'a$$ed a minin4 poo$ and the mine!s vote to
nominate0 1ho the poo$ o1ne!s a!e0 so "o a$!ead" have %e$e4ated 6!oo& o& .o!/ and thats ho1
2it'oins 1o!/in4. N5T is sin4 $eased &o!4in40 in 1hi'h 'ase the sha!eho$de!s dont &o!4e
themse$ves instead0 1hat the" do is0 the" 4et someone e$se to &o!4e and the" 4ive them the
/i'/2a'/s. The /e" in these s"stems is0 1hen the" !n this s"stem0 ho1 eas" is it to 4et the 2ad
a'to! ot and ho1 m'h dama4e 'an the" do 1hen the" a!e in the!e. ?o!e nominatin4 peop$e
JhaveK a$most no po1e!0 the on$" thin4 the" 'an possi2$" is not p!od'e a 2$o'/ and not in'$de a
t!ansa'tion. The" 'ant 'han4e the !$es0 the" dont have a!2it!a!" po1e!. Its !ea$$" no mo!e
po1e! than a Bit'oin minin4 poo$ ope!ato! has o! a ne7t N5T &o!4in4 poo$ o! a $a!4e 6ee!'oin
sha!eho$de! has.
S(: The!e po1e! is $imited 2" the ConstittionB
D': The 'onstittion is the 'ode.
S(: Ho1 1o$d "o0 i& "o 1anted to 2e'ome a de$e4ate0 ho1 1o$d "o do that o! a!e the
de$e4ates a$!ead" e$e'ted and do the" 'han4e0 eve!" so o&tenB
D': %e$e4ates a!e 'han4ed on a 'ontina$ 2asis0 "o have to maintain 'ontina$ app!ova$ o& the
se!s o& the s"stem0 eve!" time the" ma/e a t!ansa'tion0 the 1a$$et 1i$$ atomati'a$$" vote &o! the
de$e4ates that the" app!ove and on$" the top +*+0 2" app!ova$0 4et to have an oppo!tnit" to
p!od'e 2$o'/s and Id $i/e to ta$/ a2ot that &o! a se'ond he!e0 2e'ase the!e is a deep insi4ht
that I had 3st this 1ee/0 that 1h" is %e$e4ated 6!oo& o& Sta/e mo!e de'ent!a$i8ed o! 2ette!0 than
othe! 6!oo& o& Sta/e s"stems and 'omes do1n to thisG the!e is a &i7ed 'ost asso'iated 1ith
va$idatin4 a t!ansa'tion 2ein4 on the net1o!/ and i& "o 4oin4 to s'a$e a net1o!/ to 6a"6a$0 Lisa
si8e0 then "o!e 4oin4 to have to have se!ios ha!d1a!e0 in o!de! to pa!ti'ipate and a'ta$$"
p!o'ess and va$idate t!ansa'tions. The!e is a 2and1idth 'ost0 the!e is a C6I 'ost and the!e is a
sto!a4e 'ost &o! ea'h t!ansa'tion. Eve!" sin4$e va$idato! has to in'! a$$ o& these 'osts0 so i& "o
have a &i7ed t!ansa'tion &ee0 sa" + 'ent pe! t!ansa'tion0 that one + 'ent has to 2e eno4h to
'ompensate eve!"one 1ho is va$idatin4. .hat that means is that s"stems $i/e 6ee!'oin0 i& the"
s'a$e p0 on$" those 1ho have a ve!" $a!4e sta/e0 1i$$ 2e a2$e to pa!ti'ipate in minin40 p!o&ita2$".
In &a't it ends p 2ein4 so 2ad that0 i& "o 2it'oin si8e0 "o need to have a <+ mi$$ion 1o!th o&
6ee!'oin in o!de! to p!o'ess thin4s p!o&ita2$"0 thats 2ased on 'e!tain assmptions a2ot the
t!ansa'tion 'osts0 t!ansa'tion &ees and 'ost &o! va$idatin40 2t "o 'an p$ot $itt$e 4!aph the!e0 and
1hat "o see is0 that i& "o have +*0*** peop$e va$idatin40 "o! t!ansa'tion &ees have to 2e0 a +**
times hi4he! than0 i& "o have +** peop$e va$idatin4 and the $o1est possi2$e t!ansa'tion &ee on
the net1o!/ that has one pe!son va$idatin4. No matte! 1hat0 "o!e 4oin4 to 'ent!a$i8ed into
peop$e0 1hethe! its N5T 1ith thei! &o!4in4 poo$s o! 6ee!'oin0 $a!4e sta/eho$de!s0 "o 4oin4 to
'ent!a$i8in4 in a hand&$ o& peop$e o! "o! &ees a!e 4oin4 to 2e in o!de! ma4nitde 4!eate! than
an" othe! s"stem. .hat %e$e4ated 6!oo& o& St!a/e does0 is it p!ovides the most e&&i'ient 1a" &o!
the se!s to have 'ont!o$ o& that p!o'ess and sets an amont o& de'ent!a$i8ation0 instead o& it
2ein4 an ad ho'0 e$ite 4!op o& peop$e that end p 2ein4 the on$" ones the 'an p!od'e 2$o'/s.
S(: A 'op$e o& >estions0 the!es an a!4ment that minin4 poo$ a!ent ne'essa!i$" 'ent!a$i8ed0
1hethe! "o a!e ta/in4 a2ot $east &o!4in4 1ith N5T o! 1ith ASICs0 2e'ase an individa$ is
&!ee to 3oin o! $eave the poo$ as the" see &it0 even 1ith N5T0 as I nde!stand that the $eased
&o!4in4 is $i/e0 "o $ease "o! 'oins to some2od" &o! the p!pose o& &o!4in4 o! thei! e>iva$ent o&
minin40 2t the" 'ant spend those 'oins0 2e $i/e0 "o!e 3st $oanin4 the &o!4in4 po1e! to that
pe!son and same 1ith 2it'oin0 $i/e i& "o have an ASIC mine!s o! somethin40 "o 'an 3oin o!
$eave a poo$0 so is it !ea$$" &ai! to 'ont the poo$ as an entit" and not the individa$s that ma/e p
the poo$B
D': Im sa"in4 that a$$ these othe! s"stems a!e 3st a &o!m o& %e$e4ated 6!oo& o& Sta/e0
imp$emented indi!e't$"M. &ind the mino!s a!e de$e4atin4 thei! hashin4 po1e! and a$$o1in4 a
minin4 poo$ to p!od'e the 2$o'/s &o! them0 2t o& 'o!se the" 'an s1it'h poo$s. In o! 'ase the
sha!eho$de!s o& de$e4atin4 thei! atho!it" as a &!a'tiona$ ho$de! in the net1o!/0 to someone to
p!od'e 2$o'/s on thei! 2eha$& and the" 'an 'han4e it at an" time0 so "o 'an thin/ o& it as a
2i$din4 in +*+ minin4 poo$s that atomati'a$$" !e2a$an'ed0 a''o!din4 to sha!eho$de! app!ova$0
instead o& havin4 to have sepa!ate minin4 poo$ set p and mana4ed 2" peop$e.
S(: O/a" I see 1hat "o a!e sa"in4 the!e0 1hat a2ot the app!ova$ p!o'ess0 $i/e ho1 do peop$e
/no1 1hi'h peop$e the" sho$d app!ove as de$e4atesB It seems $i/e the!es some amont o&0 $i/e
$o22"in4 o! t!st that 1o$d have to 4o on0 2t $i/e ho1 "o /no1 i& a de$e4ate is 4ood and "o
1anna app!ove them0 1ithot /no1in4 1ho the" a!e o! 1hateve! o! do the" /no1 1ho the" a!eB
D': Idea$$" the de$e4ates 1o$d 2e p2$i' !ep!esentatives o& the s"stem0 thin/ o& it as a 1a" o&
e$e'tin4 a Boa!d o& %i!e'to!s o& +*+ peop$e to !ep$a'e the Bit'oin Condation and these peop$e
1o$d 2e $o22"in4 to 4et sppo!t0 !i4ht. The" a!e 2asi'a$$" advo'ates &o! the net1o!/G the" 1ant
to 4et peop$e to sppo!t them0 i& the" 1ant to do somethin4. It 4ives "o a $eade!ship 'ommnit"
&o! the s"stem0 thats the mo!e o!4ani8ed than 1hateve! mi4ht0 someone de'ides to set p a
minin4 poo$ o! 1hateve! in the 2it'oin o! N5T 1o!$d.
S(: I& "o 1anna 2e a de$e4ate0 "o essentia$$" have to 2e a p2$i' pe!son.
D': ?o dont have to 2e0 2t "o at $east have to have a !eptation0 thats ea!ned ove! time.
No1 a de$e4ates p!ima!" !o$e is to p!od'e 2$o'/s on s'hed$e0 and then in'$de t!ansa'tions
that have 2een 2!oad'ast to the net1o!/0 at that point in time and the net1o!/ atomati'a$$"
monito!s the pe!&o!man'e o& de$e4ates &!om a te'hni'a$ pe!spe'tive and 'an advise se!s0 EHe"
this 4" is not doin4 his 3o2F0 2e'ase the on$" thin4 the" 'an do to ha!m the net1o!/ is not do
thei! 3o20 in 1hi'h 'ase the!e $i/e$" to 2e voted ot in &avo! o& someone 1ho 1i$$ do thei! 3o2.
S(: .hat 1o$d p!event someone &!om '!eatin4 a &a$se de$e4ateB Is the!e an" 1a" someone
'o$d do that0 $i/e i& the" 1e!e p!evios$" a de$e4ate and the" 3st /ind o& /ept thei! '!edentia$s
o! 1heneve!0 ho1 does that 1o!/B
D': A$$ ne1 de$e4ates a!e &a$se de$e4atesG sta!t o&& 1ith no app!ova$. The"d have to 4o and 4et
the !eptation and sppo!t o& the se!s0 so "o 'ant 3st '!eate one and 4et in0 "o have to 4et
/no1n and 4et peop$e to 4ive "o 2asi'a$$" a thm2s#p in o! 1a$$et and then "o 'an 4et in0 i&
"o a!e amon4 the top +** peop$e 1ith thm2s#p.
S(: .hats the in'entive &o! an"2od" to 'a!e a2ot votin4 &o! de$e4ates and 'he'/in4 them otB
It seems $i/e the"!e doin4 1o!/ to 'he'/ ot 1hi'h de$e4ates a!e 4ood0 $i/e 1hats the in'entive
&o! peop$e to a'ta$$" do that and s'!een potentia$ de$e4atesB
D': This 4oes a$$ 2a'/ to the %AC metapho! and i& "o vie1 sha!eho$de!s as e$e'tin4 a Boa!d o&
%i!e'to!s0 1hats the in'entive &o! sha!eho$de!s to 'a!eB .e$$ the $a!4e sha!eho$de!s those "o
o1n si4ni&i'ant sta/e0 p!o2a2$" 'a!e a2ot the net1o!/ and the"!e 4oin4 to0 4o into thei! 1a$$et
and nominate the de$e4ates that the" 1o$d $i/e and i& the!es an" p!o2$ems peop$e a!e 4oin4 to
'a!e and i& the net1o!/s not pe!&o!min4 peop$e a!e 4oin4 to 'a!e and its ve!" $itt$e 1o!/0 in &a't
1e p!ovide IDLs0 1hi'h "o 'an 3st '$i'/ on a $in/ and 4et sppo!t. I& "o have a dis'ssion on
&o!m a2ot some p!o2$em0 se!s 'o$d 3st '$i'/ on it and "o add "o! app!ova$ to "o! 1a$$et.
.e a!e t!"in4 to ma/e this as &!iend$" as possi2$e and o& 'o!se0 se!s 'an a2stain0 most 2it'oin
se!s a2stain and the" a!e t!stin4 the minin4 poo$ ope!ato!s to do a 4ood 3o2. A $ot o& peop$e in
N5T a2stain o! the" have to se$e't a poo$ to 3oin and then ho1 do the" eva$ate 1hi'h poo$ to
3oin0 most o& them set it and &o!4et it0 so its !ea$$" no di&&e!ent than the 1o!/ the se!s a!e
a$!ead" doin40 e7'ept no1 the!es no need to s1it'h minin4 poo$s o! pa" m'h attention0 so 1e
a'ta$$" !ed'e the 2!den on the se!s o& the s"stem0 'ompa!ed to the a$te!natives ot the!e.
%&': One o& the thin4 thats di&&e!ent a2ot "o! app!oa'h &!om 1hat Im hea!in4 is that0 it
seems $i/e "ove $oo/ed at this and 2asi'a$$" said that0 this is 1hats 4oin4 to happen an"1a"s0
so 1h" not 2i$d a s"stem thats 4oin4 to ma/e it0 so it happens in a 'ont!o$$a2$e 1a"0 instead o&
happenin4 as an nintended 'onse>en'es0 2e'ase 1hat "o a!e sa"in4 2asi'a$$" is that0 a$$
these othe! s"stems have e7a't$" the same isses0 the" 3st dont a'/no1$ed4e them and ths its
that deve$oped in a 1a" that hasnt 2een 4ood.
D': ?o p!ett" m'h nai$ed it0 1e need to 'ont!o$ the 'ent!a$i8ation to ma/e s!e that the se!s
'an e7e!'ise thei! in&$en'e as e&&e'tive$" and e&&i'ient$" as possi2$e0 and thats a$$ 1eve !ea$$"
done and 1eve a'/no1$ed4e the e'onomi's o& the sitation0 1hi'h is that "o 'annot a mi$$ion
ve!i&ie!s and s'a$e a net1o!/0 the t!ansa'tion &ees to do that a!e 4oin4 to 2e e7t!eme$" hi4h.
%&': A$so $ets ta$/ a2ot Dipp$e &o! 3st a >i'/ se'ond he!e0 2e'ase that is the s"stem that
this $oo/s most $i/e and I /no1 that ea!$ie! on in this p!o'ess "o had $oo/ed at !ipp$es0 so 'an
"o ta$/ to s a2ot0 ho1 %6OS is di&&e!ent &!om 1hat Dipp$e does and 1h" its mo!e
de'ent!a$i8ed0 2e'ase that 1as the 'omp$aint "o had0 !i4htB
S': Di4htN I $oo/ed at Dipp$e0 EHe"0 this is ni'e0 the" p!od'e 2$o'/s eve!" +* se'onds0 it $oo/s
!e$ative$" e&&i'ient and de'ent!a$i8edF0 not nti$ I sta!ted $oo/in4 at0 1hat I had to do to
imp$ement it and the 2est 1a" I 'an des'!i2e Dipp$e is0 as i& "o sta!ted ot 1ith an initia$ set o&
de$e4ates and the on$" 1a" to 4et a ne1 de$e4ate into the s"stem is &o! the e7istin4 de$e4ates to
app!ove them0 the peop$e that ho$d the 5D6 have no sa" ove! 1ho the ve!i&ie!s a!e0 so it so!t o&
$i/e an inside!s '$2 and no one 'an &o!'e thei! 1a" in0 5D6 ho$de!s have no 1a" o& 4ettin4
someone on the!e. .hat 1eve done 1eve se$e'ted 1ho the inside '!e1 is th!o4h a demo'!ati'
p!o'ess on the 2$o'/'hain0 instead o& an inside! e$ite 4!op.
S(: .hat do "o mean 2" demo'!ati' %an0 2e'ase $i/e ho1 does someones amont o& sta/e
a&&e't thei! a2i$it" to vote o! to ma/e a 2$o'/0 i& the" a!e a de$e4ate0 does it have an" impa't0 $i/e
the amont 'oins that the" haveB
D': Not that the amont o& 'oins that the de$e4ate has0 the amont o& 'oins the peop$e 1ho a!e
votin4 &o! them have0 so eve!" sha!e o! 'oin in the net1o!/ 'an vote &o! o! sppo!t p to a +*+
di&&e!ent de$e4ates. ?o 'an 2e a de$e4ate in o! s"stem and have no sha!es at a$$0 to sta!t ot
1ith0 i& peop$e t!st "o and "o 'an 4ain sppo!t and then "o 'an ea!n in'ome p!ovidin4 a
se!vi'e to the net1o!/0 1he!eas a$$ the othe! s"stems !e>i!e "o to have a sta/e in o!de! to
p!od'e the 2$o'/s and ea!n an" mone". No10 4!anted these s"stems a!e desi4ned to 2e as
e&&i'ient as possi2$e0 so at the end o& the da" the!e !ea$$" sho$dnt 2e ve!" man" p!o&its &o! doin4
this 3o20 it sho$d 2asi'a$$" 2e 1hateve! the ave!a4e oppo!tnit" 'ost is0 in the so'iet".
%%: %an0 one o& the '!iti'isms $evied a4ainst 2it'oin has 2een that0 ea!$" adopte!s o& the
te'hno$o4" have 2een a2$e to amass >ite si4ni&i'ant 1ea$th and '!eatin4 a s/e1ed dist!i2tion
o& 1ea$th in s'h that0 its the +@ o& the +@ o& the +@ in 2it'oin0 1ho ho$ds most o& the ea!$"
4ains &!om minin4 and that '!eates a ve!" s/e1ed Hini 'oe&&i'ient0 as its /no1n0 1hi'h is the
e'onomi' met!i' &o!0 i& "o $i/e in'ome o& 1ea$thM peop$e se that as a0 $evied that as a
'!iti'ism a4ainst 2it'oin vis#O#vis t!aditiona$ '!!en'ies and 'e!tain$" that has 2een somethin4
1o!th" o& dis'ssion. No1 one o& the simi$a! '!iti'isms $evied a4ainst 6!oo& o& Sta/e s"stems is
that0 an" s'h 1ea$th dispa!it" is amp$i&ied 2" a 6!oo& o& Sta/e s"stem0 2e'ase than the
1hateve! advanta4es 4ained ea!$" on in the s"stem0 then o&&e!s additiona$ advanta4e o! ma4ni&ies
that advanta4e th!o4h the 6!oo& o& Sta/e s"stem to 4ene!ate mo!e 'oins &o! those 1ho have
'oins0 essentia$$" 6!oo& o& Sta/e is in essen'e an a$4o!ithmi' &o!m o& the !i'h 4et !i'he!. .hat
1o$d "o $i/e to sa" to that pa!ti'$a! a!4mentB Ho1 do "o see thatB
D': .e$$ &o! sta!te!s0 an"one !e4a!d$ess o& ho1 m'h 1ea$th "o have 'an 2e'ome a de$e4ate
nde! m" s"stem. ?o a!e doin4 a 3o20 "o!e pe!&o!min4 a se!vi'e0 "o have e7penses and "o
a!e 'ompetin4 to do that se!vi'e at the $o1est 'ost0 so the ho$de!s 1ant to pa" the $o1est
t!ansa'tion &ees and 1e on$" pa" ot t!ansa'tion &ees !i4ht no1. A$tho4h0 the!e a!e othe!
desi4ns0 1he!e the de$e4ates 'an a'ta$$" 2e paid th!o4h issan'e o& ne1 sha!es0 2t its not the
peop$e that have sha!es toda"0 that 4et those sha!es0 its those 1ho 'an 4et the most app!ova$ and
the" 4et that app!ova$ 2" 2asi'a$$" $o22"in4 o! 'ampai4nin40 p!oposin4 a 2d4et0 I 1ant to &nd
ma!/etin40 I 1ant to &nd deve$opment0 I 1ant to do a$$ these othe! thin4s0 1ith the mone" that
Im 4oin4 to 2e !e'eivin4 and i& "o dont "o 4et &i!ed and "o a!e ot o& the 3o2. .eve '!eated
a ma!/et &eed2a'/ in'entive0 that doesnt 'on'ent!ate 1ea$th in the peop$e that a$!ead" have
1ea$th0 2t instead a$$o1s it to ope!ate $i/e a 2siness0 1he!e the di!e'to!s have a 3o2 to do0 the"
a!e 'ompensated &o! the 1o!/ the" a!e doin4. Its a 'ompetitive 2siness0 $ots di&&e!ent peop$e a!e
'ompetin4 &o! the same 3o2 and eve!"one has e>a$ oppo!tnit"0 p!ovided that the" 'an 'onvin'e
the ma!/et and the sha!eho$de!s that the" 1i$$ do a 4ood 3o2. Its not an a$4o!ithmi' 1a" o&
ma/in4 the !i'h 4et !i'he!0 $i/e some o& the othe! s"stems ot the!e.
%%: Let me as/ "o a &o$$o1 p >estion that0 I nde!stand that the de$e4ates se thei!
de$e4ated po1e! in o!de! to va$idate t!ansa'tions and 'o$$e't &ees. 2t in a %e$e4ated 6!oo& o&
Sta/e S"stem and ho1 is ne1 'oina4e 4ene!ated and 1ho 'o$$e'ts the sei4nio!a4e &ee &o!
4ene!atin4 that 'oin0 is that the de$e4ates 1ho 4ene!ate those 'oins and /eep them o! do those
'oins 4o to those 1ho have sta/e.
D': On o! s"stem0 the de&a$t mode is that the!e a!e no 'oins 4ene!ated otside the 4enesis
2$o'/0 1eve initia$i8ed o! !e'ommend that othe!s initia$i8e thei! 4enesis 2$o'/ to 4ive possession
to peop$e thei! o1n 66S" 1hi'h 1as enti!e$" mined o! those 1ho have donated to &nd the
deve$opment o& 1hat 1eve done0 as !e'o4nition o& thei! donation and that is a $a!4e 4!op o&
se!s that had e>a$ oppo!tnit" to pa!ti'ipate0 so the!e is no ne1 'oins '!eated. No10 i& the!e
1e!e 4oin4 to 2e0 1o$d 2e issed to the de$e4ates and the de$e4ate have the option o& 2asi'a$$"
settin4 the!e pa"0 Im 4oin4 to ta/e +**@ o! *@ and so sha!eho$de!s have the po1e! to e$e't
de$e4ates that dont ta/e an" pa" 1hatsoeve!0 i& thats 1hat the" $i/e. .e 4ive a $ot o& po1e! to
the se!s in o! s"stem to 'ont!o$ 2oth the !ate at 1hi'h de$e4ates a!e paid and 1hat the &nds
that de$e4ates a!e paid a!e spent on. ?ea0 "o 'o$d 2e'ome a de$e4ateG "o 'o$d ope!ate inM..
ne1 sha!es 2een issed in a s$i4ht$" in&$ationa!" manne! and i& "o 'o$d po'/et it a$$0 "o a!e
4onna 2e ve!" e7pensive0 eve!"ones 4oin4 to sa"0 EHe"0 1e!e not 4ettin4 an"thin4 in !et!n &o!
2ein4 de2asedF and then the" a!e 4oin4 to !emove thei! app!ova$ &!om "o. The end !es$t it is0
that the sha!eho$de!s a'ta$$" 4ettin4 somethin4 &o! 2een de2ased0 in te!ms o& ma!/etin40 in
te!ms o& DP%0 se!ve! and in&!ast!'t!e. .he!eas in 2it'oin0 the se!s a!e 2ein4 de2ased and
2!ned0 the e$e't!i'it" and ASICs.
%%: .e$$ $et me as/ "o a 2it mo!e di!e't$"0 Ben. It sonds $i/e0 this is a s'heme p!ima!i$" &o!
sppo!tin4 'o!po!ate 4ove!nan'e and the se o& s'h 'oins &o! inte!na$ se 1ithin a 'o!po!ate
envi!onment o! 1ithin a '!o1dso!'ed envi!onment0 !athe! than a 2!oad and 4ene!i' '!!en'"
eithe! on a nationa$0 $o'a$ o! even t!ansnationa$ and 4$o2a$ $eve$ $i/e 2it'oin0 othe!1ise the idea
that "o 1o$d isse a$$ o& the '!!en'" to a sma$$ nm2e! sta/eho$de!s !i4ht at the 2e4innin40
doesnt sond $i/e a via2$e 2asis &o! doin4 a 2!oade! '!!en'"0 so is that the 'ase0 am I
nde!standin4 'o!!e't$" that %e$e4ated 6!oo& o& Sta/e is p!ima!i$" aimed at these t"pes o&
'!o1dso!'ed se 'oins0 !athe! than 2!o4ht $o'a$ '!!en'ies.
D': Id sa" "o 4ot it 1!on40 it 'an 2e sed &o! that pa!ti'$a! se 'ase0 2t its a 1a" o& '!eatin4
2!oad 4$o2a$ dist!i2ted 'ompanies o1ned 2" mi$$ions o& peop$e that a!e e7e'tin4 the 2siness
mode$ 'ompanies
%%: Companies0 not '!!en'ies.
D': .e$$0 "o 'an thin/ o& them as a 'ompan"0 "o 'an thin/ o& them as a '!!en'"0 these a!e
3st te!ms o& nde!standin4 thin4s0 1e!e 2asi'a$$" sa"in4 "o o1n a &!a'tion o& a s"stem0 "o
o1n some pe!'ent and the s"stem is doin4 some se!vi'e0 a$$o1in4 t!ansa'tions o& some t"pe 1ith
'e!tain !$es and that is 1hat the s"stem does. ?o 'an se that &o! a '$ose 4!op o& peop$e o! "o
'an open it p to thosands o& peop$e in 'ont!ies a$$ ove! the 1o!$d0 so the initia$ se! 2ase is
not a sma$$ 4!op0 Id sa" the!e a!e p!o2a2$" seve!a$ thosand peop$e invo$ved and e>a$
oppo!tnit" and the!es this 'on'ept o& ea!$" adopte!s p!o&it and $ate'ome!s dont. .e$$ thats
a$1a"s ho1 it is0 &i!st pe!son to &ind somethin40 2e&o!e its va$ed the" p!o&it 1hen it 'omes mo!e
va$a2$e and the!e a!e some 'omp$aints a2ot that0 2t thats e'onomi's o& env" and not 2ased
pon e'onomi's that a'ta$$" a$$o1 so'iet" to 4!o1 and p!ospe!.
%%: .e$$ it 'e!tain$" sonds sita2$e &o! dist!i2ted atonomos 'o!po!ation0 2t I 'an see ho1
this mi4ht not 2e a ve!" pop$a! s'heme &o! se in a 2!oad '!!en'"0 2e'ase this 1o$d '!eate a
ve!" n2a$an'ed sitation &o! the ea!$" adopte!s0 even mo!e im2a$an'ed than some o& the '$aims
a4ainst 2it'oin and ho1 do "o s'a$e that to : Q 2i$$ion peop$eB
%&': .e$$ $et me 2!ea/ in he!e to0 2e'ase I 1ant to inte!3e't0 that 1as not a$1a"s the p$an. The
p$an 1as o!i4ina$$" that0 the to/ens that 1e!e ot the!e0 6!otosha!es 1hi'h 1as the o!i4ina$ to/en
that 1as !e$eased0 1as spposed to !ep!esent a2ot +*@ o& tota$ spp$" o& BitSha!es0 so 'an "o
ta$/ a2ot the0 ho1 that 'han4ed ove! time0 in addition to And!e1s >estionB
D': The" a!e 4oin4 to !ep!esent ;*@ o& the initia$ spp$" o& the BitSha!es#5 s"stem0 the" 1e!e
a$$ mined into e7isten'e0 2t minin4 is 3st a 1a" o& 'ent!a$i8in40 in 4ivin4 "o! sha!es to the
peop$e 1ho a!e 2!nin4 e$e't!i'it"0 1ho a!e IT e7pe!ts o! 1ho 'an 4et $a!4e se!ve! &a!ms !nnin40
its not a 1a" o& ma/in4 it &ai! &o! the ave!a4e pe!son. At the end o& the da"0 the ave!a4e &o!'e
pe!son a$1a"s has to 2" into these s"stems and "o 'an have an" /ind o& &ee$#4ood0 dont /no1
1hat the 1o!d Im $oo/in4 &o! he!e0 2t a$$ those ideas 'ant i4no!e the $a1s o& e'onomi's0 'ant
4ive peop$e somethin4 &o! nothin4 and e7pe't to 4!o1 1ea$th0 peop$e 1i$$ end p se$$in4 it to
someone e$se and then ta/in4 the &!ee mone" o! &!ee 1ea$th that the" 4ot and 'onsmin4 it. Its
!ea$$"0 have the !i4ht p!ospe'tive he!e0 and 1eve e$iminated the ma3o! 2a!!ie! to ent!"0 'ased 2"
6!oo& o& .o!/. An"one 'an ta/e o! so!'e 'ode0 sta!t a ne1 4!op 1ith a ne1 initia$ 2ase o&
sha!eho$de!s and 1hateve! a$$o'ations 4onna he$p this thin4 4!o1 and 4ain 1ide a''eptan'e0
thats m" 2asi' thin4s is0 1eve !emoved 2a!!ie!s to ent!"0 made it e>a$ oppo!tnit"0 1eve had0
o& a$$ the di&&e!ent Bit'oin ).* p!o3e't ot the!e0 the $on4est time and easiest 1a"s to 4et invo$ved
and 4et "o! initia$ sta/e in 1hat 1e!e doin4.
S(: Is %e$e4ated 6!oo& o& Sta/e imp$emented "et0 in 6TSB .as the!e a ha!d &o!/ at some point
o! is it this p$anned &o! the &t!eB
S': Di4ht no10 1e have %e$e4ated 6!oo& o& Sta/e is imp$emented in o! test 'hain and its soon
4oin4 to 2e $an'hed0 p!o2a2$" in the ne7t t1o o! th!ee 1ee/s0 its 4oin4 to 2e $an'hed &o! o!
BitSha!es#5 'hain.
S(: .i$$ peop$e 1ho have 6TS have to $i/e in insta$$ a ne1 '$ient0 $i/e ho1$$ that 1o!/B
D': ?o 'an impo!t "o! 6TS 1a$$et in "o! Bit'oin 1a$$et and 4et "o! initia$ 2a$an'e.
)%d#ertisement)
Toda"s episode in addition to o! LTB' sponso!s is 2!o4ht to "o 2" K!"ptoKit. K!"ptoKit is a
1e2 1a$$et that insta$$s !i4ht into "o! 'h!ome 2!o1se!s0 so its a$1a"s the!e 1hen "o need it. It
a$so has an em2edded Hoo4$e !eade!0 thats $oo/in4 &o! Bit'oin head$ines0 he!e a!e the head$ines
2i$t into the ne1s&eed on this0 )) ($" )*+,9 6a!anoia mddies medias vie1 o& the 2it'oin
potentia$0 2it'oin p!epa!es &o! se'ond 'omin4 in India0 meet the hi4h s'hoo$e!s deve$opin4
BitSe$&0 the <+;* Bit'oin ATM0 ho1 Ne1 ?o!/ State 1ants to !e4$ated 2it'oin0 2it'oin 'o$d
2ene&it o! 'stome!s and ta7i d!ive! sa"s Hai$o CEO0 %e$$ 3mps on the Bit'oin 2and1a4on0
4$"ph IOS messa4in4 app !einstates 2it'oin &n'tiona$it" a$$ this and mo!e0 'he'/ it ot at
K!"ptoKit.'om.
Toda" is the &i!st episode thats 2!o4ht in mo!e than +**0*** LTB 'oin sponso!ships a$one0 the
hi4h sponso!ship nm2e! on episode +)- 1ith :;0*** LTB' is 'oin&i!e.'&. CoinCi!e.'& is a ne1e!
ne1s and opinion site0 that Im >iet$" 'onspi!in4 to 'o#opt and move on to the LTB p$at&o!m0
2t in the meantime the!e so$i'itin4 &eed2a'/ &!om se!s o& the site on thei! e7pe!ien'e0 so &a!9 #
%avid had to sa" EIm ve!" imp!essed 1ith the site and the immedia'" o& the 1o!/ 2ein4 doneF
Se!4io 'ommented EI !ea$$" $i/e the $a"ot and ho1 p!o&essiona$ "o 4"s a!e0 1ith 1hat "o
1!iteF. The" a!e a$so !nnin4 a po$$ !i4ht no10 1ho in&$en'ed "o to 4et into '!"pto'!!en'"0
!i4ht no1 its a ti4ht !a'e 2et1een a &ami$" mem2e! o! &!iend0 othe! and o& 'o!se And!eas M.
Antonopo$os. I& "od $i/e to 1ei4h in0 head ove! to CoinCi!e.'&0 "o$$ &ind the po$$ on "o!
$e&t.
OhN Its time &o! the Ma4i' 1o!ds. Toda"s ma4i' 1o!ds is TITAN0 "ove 4ot nti$ Sat!da" the
)Ath to visit Letsta$/2it'oin.'om0 $o4in to "o! a''ont and s2mit "o! ma4i' 1o!d to '$aim
"o! sha!e o& the 'ommnit" LTB'
The se'ond sponso! &o! episode +)-0 'omin4 in 1ith A*:)* LTB' is B!a1/e!.'om. I have to$d
"o a2ot B!a1/e! 2e&o!e0 2asi'a$$" its a ma!/et that 'onne'ts peop$e 1ith 2it'oins to spend to
those 1ith '!edit 'a!ds $oo/in4 to 2" 2it'oins 'onvenient$". 6ete! 1ants a hat and 1ants to pa"
in 2it'oins0 L'" 1i$$ 2" the hat &o! 6ete! 1ith he! '!edit 'a!d0 6ete! 1i$$ !e'eive the hat and
L'" 1i$$ !e'eive the 2it'oins sed to pa" &o! the hat. This is a t!$" de'ent!a$i8ed e7'han4e and
a 'oo$ thin4 a2ot is that it doesnt !e>i!e pe!son#to#pe!son &nds t!ans&e!!ed ove! the Inte!net0
1hi'h a!e 4ettin4 in'!easin4$" !est!i'ted. The 1a" B!a1/e! 1o!/s0 is that L'" pa"s the
me!'hant 1ith he! '!edit 'a!d and 6a$ sends 2it'oin to L'". This is 2asi' 'omme!'e0 none o&
thats 4onna 2e !e4$ated o! !est!i'ted at an" time o! at $east so 4oes the $o4i'a$ ove! at B!a1/e!.
I& "od $i/e to $ea!n mo!e0 'he'/ ot BDA.KED.COM. Ba'/ to the sho1.
)%d#ertisement)
%&': I thin/ 1eve mana4ed to ma/e it a$$ the 1a" th!o4h this 'onve!sation0 most$" &o'sin4
on the te'hno$o4" and ho1 it 1o!/s and 1h" it ma/es sense o! i& it does and I dont 1e have
a'ta$$" ta$/ed a2ot 1hat it is0 that this a''omp$ishes &o! o! 'an "o 'an ta$/ a2ot 1hat
advanta4es %6OS has 4iven "o and $i/e 3st 2$$et point $ist somethin4 $i/e that0 no1 that "o
have this0 1hat a!e "o doin4 1ith itB This 1as a 'o!e pie'e o& te'hno$o4"0 !i4ht0 $i/e "o had to
stop eve!"thin4 and 2i$d this p &!om s'!at'hB
D': Di4ht0 so 1hat this is 4iven s is +* se'ond 2$o'/s 'on&i!mations0 that a!e mo!e se'!e than
2it'oin a&te! si7 2$o'/ 'on&i!mations0 its 4iven s the a2i$it" to have +* t!ansa'tions pe! se'ond
in o! test net1o!/s and to s'a$e in the &t!e to thosands o& t!ansa'tions pe! se'ond0 in a
'ont!o$$a2$e manne! that maintains the de'ent!a$i8ation o& the s"stem0 maintains the 'ont!o$ o&
the ave!a4e se!0 ove! 1ho is !nnin4 the net1o!/0 thats the main advanta4e o& the %e$e4ated
6!oo& o& Sta/e s"stem. Thats not the on$" thin40 1eve 2een doin40 its 3st o! 'o!e 'onsenss
te'hno$o4" that 4ives s the 2est pe!&o!man'e o& an" s"stem ot the!e.
%&': Te$$ s 1hats the e7pe!ien'e 4oin4 to 2e $i/eG on'e 1e 'an a'ta$$" se BitSha!es0 1hat
'an 1e do 1ith itB .h" is this p!od't that sho$d 2e att!a'tive to peop$e 1ho dont a$!ead" have
it and a!e inte!ested in 2it'oin o! inte!ested in this t"pe o& te'hno$o4"B .hat a2ot it0 'an the"
do0 that the" 'ant do 1ith 2it'oinB
D': In o! s"stem0 1e a!e pttin4 a $ot o& emphasis on ease#o&#se0 that means that se!s o& o!
s"stem neve! have to see a p2$i' /e" o! an add!ess $i/e the" do in 2it'oin0 "o send "o!
t!ans&e!s to a name0 so "o 'an !e4iste! "o! a''ont0 1e!e 4oin4 to ma/e a$$ that st&&
e7t!eme$" eas" &o! the se!s and 1heneve! "o do send t!ans&e!s &!om pe!son#to#pe!son0 "o
a'ta$$" see0 1ho its to0 1ho its &!om0 a memo on eve!" t!ansa'tion. It $oo/s and &ee$s 3st $i/e
on$ine 2an/in40 1ith a'ta$ meanin4&$ memos in "o! t!ansa'tions and a$$ thats done 1hi$e
maintainin4 p!iva'" is a simi$a! 1a" to some o& the %a!/'oins ot the!e.
%&': .hen "o!e sa"in4 that0 this is somethin4 that I 'an send0 so I 'an 3st send &!om Adam
to And!eas0 i& 1e 2oth have a''onts he!e and those a!e 2oth o& o! names0 i& someone $oo/s
o!M Is the!e a 2$o'/ 'hain histo!" 4oin4 on he!eB Can someone $oo/ and 'an the" see Adam
sent to And!eas o! a!e these add!esses !ea$$" and "o!e 3st a2st!a'tin4 itB
D': Inde! the hood the" a!e add!esses0 thats sin4 a te'hno$o4" o! 'on'ept 'a$$ed a stea$th
add!esses that has 2een add!essed in the Bit'oin 'ommnit" &o! some time0 1hat 1e did is0 1e
too/ stea$th add!esses and made them eas" to se 2" havin4 name o! a''ont !e4ist!ation on the
2$o'/'hain itse$&. Loo/in4 at the 2$o'/'hain "o neve! send to the same add!ess t1i'e0 nde! the
hood and no one 'an tie those thin/s to4ethe! and in &a't0 in the mo!e advan'ed se'!it" modes0
"o 'an a'ta$$" send m$tip$e t!ansa'tions0 instead o& a sin4$e t!ansa'tion so the" "o dont end
p t"in4 "o! inpts and otpts to4ethe! in a 1a" the" 'an 2e ana$"8edM !ea$$" 4ood ana$"8in4
2$o'/'hains. TITAN is T!ans&e! Invisi2$" To An" Name0 its 1hat it stands &o! and thats
2asi'a$$" the p!o'ess I 3st des'!i2ed0 "o si4n#p &o! the 2$o'/'hain0 "o do1n$oad the 1a$$et0
"o '!eate an a''ont0 "o 4et it !e4iste!ed &o! &!ee at one o! mo!e Ca'ets that ma"2e ot the!e
and on'e "ove done that "o 'an send and !e'eive o! $o4 into 1e2sites in a '!"pto4!aphi'
se'!e 1a"0 /ind o& $i/e 1e p$anned &o! Ke"hotee. This 4ives "o a $ot o& those &eat!es0 and
on'e "ove 4ot that a''ont0 "o 'an send assets &!om one pe!son anothe!. The othe! thin4 o!
s"stem does0 is it a$$o1 se! issed assets0 so "o 'o$d '!eate LTB'oin on top o& BitSha!es#5
and t!ans&e! those 2et1een se!s 2" name 1ith a$$ the 2ene&its o& TITAN0 in'$din4 memos and
the p!iva'" and se'!it" that "o $oo/in4 &o!0 in the ve!" eas"#to#se manne!0 enti!e$" th!o4h a
1e2 inte!&a'e.
S(: So0 is TITAN /ind o& !ep$a'in4 Ke"hotee o! is that sti$$ p$anned to !o$$ot a$so.
D': Ke"hotee0 so!t o& 2ased on 6!oo& o& .o!/ and its se'!it" mode$0 !ea$$" needed to 2ene&it
&!om some the othe! thin4s "o have done0 so "ea0 the Ke"hotee 2$o'/'hain is so!t o& 2ein4
!ep$a'ed 1ith the %AC that 1e '!eate0 has a name s"stem and it so!t o& $i/e havin4 an emai$
a''ont at App$e o! at Hoo4$e0 "o have "o! name at BitSha!es#50 "o! name at Bitsha!es#*)0
Bitsha!es0 1hateve! the di&&e!ent %ACs ma" 2e0 so thats ho1 1e!e 4oin4 to do a''onts no1.
Instead o& havin4 one 'hain o& a$$ a''onts0 "o identi&" the 'hain and name to4ethe!.
S(: .hat a2ot the peop$e0 the!e 1as a p!esa$e o& Ke"hotee0 I !emem2e!0 $i/e $ast a!ond Ne1
?ea!s )*+,0 1hat happened to the peop$e 1ho 2o4ht into that ea!$"B
D': The"!e 4ettin4 thei! names p!e!e4iste!ed in the Henesis 2$o'/ o& eve!" ne1 'hain.
S(: Can "o e7p$ain a $itt$e 2it mo!e0 3st ma"2e a4ain0 2e'ase Titan is a ne1 'on'ept to meB
This is a p!iva'" &eat!e and its othe! thin4s too0 2t its a p!iva'" &eat!e0 $i/e ho10 is it
de&inite$" p!ivate0 $i/e is it a'ta$$" anon"mos and ho1 do 1e /no1B
D': Its as anon"mos as sin4 2it'oin0 1ith a ne1 add!ess eve!" time "o dea$ 1ith an"
t!ansa'tion 1ith an"one0 1hat it does is0 it ma/es sin4 2it'oin in a se'!e 1a". ?o 'an a'ta$$"
se 2it'oin toda" in a p!ivate 1a"0 its 3st a $ot o& 1o!/0 it !e>i!es "o to mana$$" e7'han4e
/e"s and ma/e s!e "o dont se the same /e"s m$tip$e times and i& "o!e 4oin4 to 'om2ine
m$tip$e otpts0 its 3st a $ot o& 1o!/ to do on the 'oin toda"0 tho4h it is possi2$e. TITAN is a
1a" o& atomatin4 a$$ that and ma/in4 it eas"#to#se0 so "o! se'!e 2" de&a$t0 "o! memo is
en'!"pted0 so no one 'an see that0 no one sees 1ho "o sent the &nds to and "et the peop$e0 1ho
"o sent the &nds to0 /no1 1ho the &nds a!e &!om. It 4ives "o the ease#o&#se &eat!es0
1ithot 'omp!omisin4 the othe! aspe'ts o& "o! p!iva'".
S(: The!es a 2$o'/'hain0 !i4htB Is the!e a 2$o'/'hainB
D': This is a$$ 2ased on a 2$o'/'hain0 "es.
S(: Ho1 does it pt those p!iva'" &eat!es into the 2$o'/'hainB I am sti$$ havin4 t!o2$e
nde!standin4 it.
D': At the !is/ o& 4ettin4 too te'hni'a$0 it essentia$$" ses an e$$ipti' '!ve di&&ie#he$$man to
de!ive the /e"0 sin4 hie!a!'hi'a$ 1a$$ets0 "o see ho1 te'hni'a$ it 4ets0 ve!" >i'/$".
S(: ?ea.
D': To 4ene!ate a ne1 p!ivate /e"0 so 1hen "o send the &nds to someone0 "o 4ive them a
means o& 4ene!atin4 the p!ivate /e"0 sin4 a sha!ed se'!et that on$" "o and the othe! pe!son
/no1s0 so the /e"s Ja!eK not /no1n in advan'e0 its 4ene!ated at the time "o send it. It ses a
simi$a! method to ho1 BitMessa4e a$$o1s "o to send messa4es p!ivate$" to peop$e0 so its /ind
o& $i/e BitMessa4e meets t!ansa'tions.
%&': One o& thin4s that eventa$$"0 1e 4et to 1ith BitSha!es0 is the0 E1hat "o a'ta$$" 1ant to
do 1ith itF. ?o mention othe! 'hains0 othe! %ACs and the one that "o mentioned at the ve!"
2e4innin4 o& this episode 1as0 BitIS%. De'ent$"0 1eve seen anothe! t"pe o& to/en#2ased IS
do$$a! a2st!a'tion 2e p!oposed0 1he!e0 essentia$$" it is a !edeema2$e one0 1he!e the do$$a!s a!e
/ept in a 2an/ somep$a'e and "o 'an !edeem the to/en th!o4h s$i4ht$" di&&i'$t p!o'ess 2t
1hat "o!e 1o!/in4 on0 &i!st o& "o!e 1o!/in4 on it a2ot a "ea! no10 I thin/ this is a'ta$$"
the &i!st p!o3e't that 1e sta!ted ta$/in4 a2ot0 2a'/ $ast smme! and se'ond$"0 "o its not a
!edeema2$e assets0 so 'an "o ta$/ to s a2ot BitIS%0 the se 'ases that "o see &o! it and /ind
o& 3st a hi4h#$eve$ vie1 ho1 it 1o!/s.
D': .e$$0 BitIS% is !edeema2$eG its !edeema2$e &o! va!ia2$e amont o& sha!es in the %AC. The
amont o& sha!es that "o 4et 1hen "o !edeem it is p!opo!tiona$ to the va$e o& the do$$a!. Its is
!edeema2$e &o! do$$a!s 1o!th o& 2it'oin0 o! i& this 1as on Bit'oin net1o!/0 it$$ 2e $i/e '!eatin4
an asset that 1as !edeema2$e &o! do$$a!s 1o!th a 2it'oin0 that mi4ht 'han4e &!om da" to da"0 2t
1hen "o 4o to !edeemin4 it0 "o a$1a"s 4et a do$$a!s 1o!th the 2it'oin and the 1a" that 1o!/s0
is the same 1a" that do$$a!s a!e '!eated in the !e4$a! 2an/in4 s"stem. %o$$a!s a!e $ent into
e7isten'e0 2a'/ed 2" 'o$$ate!a$0 in the 'ase o& the '!!ent 2an/in4 s"stem0 the 'o$$ate!a$ is "o!
hose0 in the 'ase o& o! s"stem0 the 'o$$ate!a$ is sha!es in the %AC itse$& and it imp$ement
atomati' ma!4in 'a$$s0 so that i& the p!i'e moves a4ainst the pe!son 1ho is e&&e'tive$" sho!t0
the" 2o!!o1ed and so$d and so it &o!'es them to 'ove! and 2" it 2a'/ &!om the ma!/et. That
'!eates a pe40 and the ma!/et pe4 1o!/s on the p!emise that0 a$$ ma!/et pa!ti'ipants 2" and se$$
2ased pon 1hat the" thin/ ma!/et pa!ti'ipants 1i$$ 2e 2"in4 and se$$in4 in the &t!e and the
on$" !ationa$ 'hoi'es is to assme that0 the" a!e 4oin4 to t!ade 2ased on the pe4 in the &t!e0
2e'ase i& "o dont 2e$ieve that0 then "o have to de'ide 1hi'h 1a" is it 4onna 4o0 p o! do1n
and i& "o dont have a 1a" o& sa"in40 "o a2stain &!om the ma!/et and i& "o dont thin/ it
1o!/s0 "o se$$ the sha!es and 4et ot0 2e'ase the s"stem is 4onna &ai$ in the &i!st p$a'e. Its a
se$&#!ein&o!'in4 ma!/et pe4 that 'ases the assets to a$1a"s have the p!'hasin4 po1e! o& a
do$$a!.
%&': This is one o& those e$ements0 that 'ant !ea$$" 2e tested0 nti$ a&te! the s"stem that "o a!e
'!eatin4 is in p$a'e0 is that !i4htB
D': It is a 2it o& an e7pe!iment0 its an e7pe!iment that0 a $ot o& peop$e have a $ot o& 'on&iden'e
in0 3st &!om thin/in4 a2ot it0 in an intitive sense0 2t ma!/ets a!e ma!/ets and its !ea$$" ha!d
to p!edi't ho1 hmans 1i$$ 2ehave in mass0 as/ an" e'onomist. The 1o!st#'ase s'ena!io in the
s"stem is0 "o have to add a t!sted p!i'e &eed0 to sett$e it and then it 1o!/s 3st $i/e a p!edi'tion
ma!/et and the h"pothesis that 1e have is that0 the p!i'e &eed is nne'essa!"0 1e have an
a$4o!ithm and va!ios !$es in p$a'e to p!event 'ommon manip$ation0 e$iminatin4 &!ont !nnin4
and othe! atta'/s0 a$so 2e'ase 1e have se! issed assets0 its enti!e$" possi2$e &o! "o to do
e&&e'tive$" IOI do$$a!s0 !ipp$e st"$e o! $i/e this othe!s p!o'ess "o des'!i2ed0 1he!e "o 'an
!edeem it &!om someone "o t!st to ho$d it0 ho$d !ea$ do$$a!s &o! "o0 2t the Bit assets0 the
ma!/et pe44ed assets a!e the 2i4 &eat!e that eve!"one is most e7'ited a2ot0 no1 that 1eve 4ot
the &ondation in p$a'e0 1eve 4ot a 'onsenss in o! a!'hite't!e that 'an s'a$e to hand$e these
t!ansa'tion vo$mes. I am ve!" optimisti' a2ot 1he!e 1e a!e 4oin4 to 2e in a month o! t1o &!om
no1.
%&': In the $ast0 I 4ess ei4ht months "o 1i$$ have issed t1o ne1 t"pes o& to/ens0 issed the
6!otosha!es at the 2e4innin4 and no1 BitSha!es at this $ate! point. No1 that "o have this 2asis
$eve$0 I am not as/in4 &o! spe'i&i' dates0 I am as/in4 &o!0 do "o have an" so!t o& anti'ipation o&
the pa'e that 1e$$ see0 ne1 thin4s 'omin4 otB %o "o thin/ 1e$$ see si7 months 2et1een
p!o3e'ts o! is it 'an 2e sho!te! o! $on4e!B
D': Thin4s a!e 4oin4 in pa!a$$e$ !i4ht no1G 1eve 4ot one team 1o!/in4 1ith a 'ompan" 'a$$ed
Co$$o1 M" Lotes0 1o!/in4 on a votin4 %AC0 thats !ea$$" e7'itin4. Anothe! one 1o!/in4 on the
%NS %AC thats sin4 a'tions &o! that. BitSha!es msi' is a$so 2ein4 deve$oped in pa!a$$e$. I
1o$d e7pe't that0 "o 4onna sta!t see an ava$an'he o& man" di&&e!ent %ACs possi2$" as man" as
si7 ot 2" the end o& this "ea!0 o& 'o!se thats a$$ s23e't to deve$opment and np!edi'ta2$e
'i!'mstan'es.
S(: .i$$ othe! peop$e otside o& BitSha!es0 the 'ompan" have the oppo!tnit" to deve$op %ACs
&o! the p$at&o!mB
D': BitSha!es as a 'ompan" on$" p!od'es the too$ /it0 eve!" sin4$e %ACs that is !e$eased is
2een !e$eased 2" anothe! 'ompan"0 not 2" s.
S(: Hot'haN
%&': ?o 4"s sta!ted 2asi'a$$" the &i!st '!"pto e>it"0 2a'/ in Novem2e! 1ith 6!otosha!es and
this 1as a4ain 2e&o!e this had !ea$$" 2een 'on'epta$i8ed0 that "o 'o$d have somethin40 to/ens
that "o 'o$d a'>i!e0 that 'o$d then 4ive "o anothe! to/en0 at a $ate! point as so!t o& !e1a!ds.
It /ind o& $oo/s $i/e some so!t o& $e4a$ st!'t!es0 and othe! 1o!ds that "o 4"s have sed have
'han4ed &!om sha!es and 1e 1e!e ta$/ and "o!e sin4 the 1o!d sha!es no1. Can "o ta$/ a2ot
the $e4a$ envi!onment and ho1 its 'han4ed and 1hat thats meant to "o ove! the $ast ma"2e si7
months0 nine monthsB
D': The $e4a$ envi!onment is a mess &o! eve!"one in this indst!"0 thin4s that seem to ma/e
sense0 $i/e it doesnt matte! 1hat "o 'a$$ it0 it matte!s 1hat it is0 is a'ta$$" seems to 2e the
opposite. O& 'o!se0 its di&&e!ent on the &ede!a$ and state $eve$s0 end !es$t is0 1e a!e t!"in4 to
st!'t!e eve!"thin4 1e!e doin4 to0 2asi'a$$" divide the !esponsi2i$ities and p!ote't eve!"one
invo$ved0 1e p!od'e open#so!'e so&t1a!e0 1e dont ope!ate an" %ACs0 1e 3st p!ovide the
so&t1a!e that ma/es it possi2$e. Thats $i/e '!eatin4 a 4ene!i' e7'han4e0 "o dont !n the
e7'han4e0 "o p!ovide the so&t1a!e to the e7'han4e0 its a di&&e!ent $e4a$ standin4 "o have
2et1een those t1o thin4s and then 1e a$$o1 othe! 'ompanies0 othe! individa$s o! 3st !andom
peop$e on the Inte!net to ta/e the so!'e 'ode and se it0 &o! 1hateve! its 4ood &o!0 thats ho1
1eve p!ote'ted o!se$ves and a$so o! se!s and the peop$e 1ho a!e sin4 it0 no1 the" 'an 2e
mo!e p!ote'ted as 1e$$0 2e'ase 1e$$ 2e a2$e 'ontine to deve$op and enhan'e the 2asi' too$/it
pon 1hi'h the!es te'hno$o4" is 2ased. .hethe! "o 'a$$ it sha!es0 sha!es is a ve!" se&$ 1a" o&
thin/in4 a2ot it a2st!a't$" in e'onomi' te!ms &o! eva$atin4 the desi4n and o& the s"stem. O!
votin4 %AC 1i$$ p!o2a2$" 'a$$ them votes and the!es 2een dis'ssion o& 'a$$in4 them0 notes in
the msi' %AC0 it doesnt !ea$$" matte! 1hatM "o 'a$$ them di&&e!ent thin4s 2e'ase the"!e
not e7a't$" sha!es0 $i/e in t!aditiona$ 'ompan". On the othe! hand the!e a!e 'ompanies ot the!e
$i/e Ove!sto'/0 that is $oo/in4 to a'ta$$" 2a'/ thei! 'o!po!ate sto'/ 1ith these thin4s and it
1o$d 2e a''!ate to 'a$$ them sha!es at that point in time. 6eop$e 1ant to se this st&& &o! that
and in &a't a!e too$/it 'o$d eventa$$" 2e adapted to p!ovide an a$te!native a''ontin4
me'hanism &o! a 'ent!a$i8ed entit"0 "o 'an ha!d'ode the !e4$ations the 4ove!nment !e>i!es
into the s"stem as 1e$$0 its !ea$$" a 4ene!i' te'hno$o4"0 1hats 2ein4 t!a'/ed0 1hethe! "o 'a$$
them votes0 1hethe! "o 'a$$ them voi'e o! notes o! to/ens o! 'oins0 "o 'a$$ them 1hateve! is
'at'h"0 4ood &o! ma!/etin4 and avoid $e4a$ entan4$ements.
S(: ?ea0 it seems to 2e a p!o2$em0 no2od" !ea$$" /no1s ho1 to avoid $e4a$ entan4$ements0 2t I
have to sa" I do $i/e "o! app!oa'h0 1e$$ see ho1 it sha/es ot0 I 4ess. The!es some othe!
'!"pto p$at&o!ms I thin/ that ma"2e seem to 1ant to 2e $i/e the 2$o'/'hain o& eve!"thin40 I am
3st 1onde!in4 $i/e have "o eve! hea!d the ph!ase0 t"!ann" o& the 'ode0 ho1 &a! does the
!eptation 4o in the Bitsha!es p$at&o!m0 ho1 do "o p!ote't a4ainst so!t o& t"!ann" o& the 'odeB
D': Ive neve! hea!d the e7p!ession the t"!ann" o& the 'ode0 the main thin4 that Ive 'ome to
nde!stand 1ith a$$ these te'hno$o4ies0 is that the 'ode is 3st an e7p!ession o& a 'onsenss o& a
se! 'ommnit"0 its a 1a" o& /eepin4 s'o!e0 the t!e 'onsenss is in the intent o& the se!s and
not the 'ode and the main 1a" that "o p!event the !ea$ 'onsenss amon4 the se!s &!om 2ein4
'o#opted and t!ned a4ainst them 2" a mino!it"0 is to !emove 2a!!ie!s to ent!"0 as $on4 as its ve!"
eas" &o! the se!s to &o!/ the 'ode and 't ot the p$a"e!s that a!e t!"in4 to 'enso! t!ansa'tions o!
shtdo1n s"stem o! 'han4e the !$es in a 1a" that vio$ates the so'ia$ 'onsenss0 the s"stem 1i$$
'ontine to 4!o1 and &$o!ish and "o! !e$ative$" se'!e and that is 1hat the t!e 'onsenss is. I&
the!e is a 24 in the 'ode0 eve!"ones 4oin4 to &o$$o1 the 'hain o! &o$$o1 the 'o!!e'tion that
hono!s the o!i4ina$ 'onsenss0 as it 1as intended and ve!" &e1 peop$e 1i$$ sa" E.e$$0 te'hni'a$$"
this is a $on4e! 'hain and the!e&o!e it is the one shoe s"stemF0 I 2e$ieve peop$e a!e sma!te! than
that0 thats the !ea$ po1e! o& these s"stems.
S(: Ma"2e "o 'o$d 4ive s a !oadmap0 2e'ase I /no1 a $ot o& thin4s have 'han4ed at
Bitsha!es and its an np!edi'ta2$e envi!onment0 o& 'o!se and "o a!e t!"in4 to 4et st&&
deve$oped0 2t 1hen "o see happenin4 1ith Bitsha!es ove! the ne7t month0 ove! the ne7t si7
months0 $i/e paint a pi't!e o& 1hat "o thin/ is 4onna 4o on and 1hat 1e 'an e7pe't to 2e a2$e
to seB
D': %ACs In$imited is a 'ompan" in China0 thats 4oin4 to 2e $an'hin4 Bitsha!es#50 BT5. It
is '!!ent$" t!adin4 on Bte! and C!"pts" 2ased pon the Ce2!a!" )*
th
snapshot and I 1o$d
e7pe't that ove! the ne7t 'op$e o& 1ee/s that0 the" 1i$$ 2e !e$easin4 a '$ient &o! se!s to
do1n$oad and a'ta$$" sta!t t!adin40 and on that '$ient se!s 1i$$ 2e a2$e to '!eate a''onts0 do
se! issed assets and the p$an I 2e$ieve is to do ha!d &o!/ sho!t$"0 1ithin the ne7t 'op$e months
that &$$" imp$ements the ma!/ets in Bit assets0 that mi4ht 2e !ead" &!om da" one0 its a$$ p to
them to de'ide 1hi'h snapshot the" 1ant to do0 do the" 1ant to de$a" the !e$ease and in'$de
mo!e &eat!es o! !e$ease no10 4et t!adin4 4oin4 and do a ha!d &o!/ in a 'op$e months to p4!ade
the s"stem to the &$$ potentia$. Eithe! 1a" "o $oo/ at it0 1e have a p!od't that "o 'an se and
t!" toda"0 1e do 'ontina$ d!" !ns on o! test net1o!/0 that a!e open to the p2$i'0 an"one 'an
pa!ti'ipate in0 i& "od $i/e to see 1hat o! 1a$$et is0 i& "od $i/e to e7pe!ien'e TITAN o! the 3o"
o& +* se'ond t!ansa'tions0 its a ve!" di&&e!ent e7pe!ien'e sin4 o! 1a$$et 'ompa!ed eve!"thin4
e$se ot the!e. ?o 'an visit 2itsha!esta$/.o!40 the!e is a th!ead on the!e &o! va!ios d!" !ns that
1e!e doin4. 6ost the >estion i& "o $i/e to /no1 ho1 to 4et invo$ved. I& "o $i/e to $ea!n mo!e
a2ot s0 "o 'an visit 2itsha!es.o!4 &o! hi4h#$eve$ ove!vie1 o& 1hat 1e a!e doin4 and 1hat o!
vision is.
%&': (st as a >i'/ &ina$ note0 "o t!st %ACs In$imited0 thats the 'ompan" that "o!e a1a!e
o&0 the" a!e not 3st a !andom 'ompan" thats 4onna 2e !e$easin4 "o! 'odeB
D': ?es0 its !n 2" peop$e I t!st.
%&': %o "o have an" 'on'e!ns a2ot that0 2e'ase the mode$ that "o!e 4oin4 &o!1a!d
2asi'a$$" sa"s that an"2od" 'an ta/e 1hat "o!e doin4 and do an"thin4 1ith it0 so 2asi'a$$" "o
have pa!tne!s in p$a'e0 that ma/e it so "o &ee$ $i/e the"!e t!st1o!th" peop$e hand$in4 these
!esponsi2i$ities0 2e'ase it is a !esponsi2i$it".
D': Its a !esponsi2i$it"0 its an oppo!tnit" to sta!t a 2siness a ne1 2siness0 so 1e a!e '!eatin4
3o2s &o! peop$e0 and 1e a!e sha!in4 thin4s &!om t!"in4 to 2e as de'ent!a$i8es as the s"stem 1e a!e
2i$din4.
*ED+TS
Than/s &o! $istenin4 to episode +)- o& Lets Ta$/ Bit'oin. Content &o! toda"s sho1 1as p!ovided
2" Adam B. Levine0 Stephanie M!ph"0 And!eas M. Antonopo$os0 and %anie$ La!ime!.
This episode 1as edited 2" Adam Levine.
Msi' &o! toda"s sho1 1as p!ovided 2" (a!ed D2ens0 Matthe1 M!/o1s/i and H!t" Beats0
st!ai4ht &!om the st!eets.
The Cive Co!m 6osts p!omotion sti$$ has one mo!e 1ee/$" dist!i2tion=0 "o have 4ot ,#; da"s
$e&t to 4et ; posts on "o! LTB &o!m a''ont and sp$it "o! sha!e o& the ).; mi$$ion LTB'
!emainin40 so si4n p and 4et postin4 toda"N
Have a 4ood one.